The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AT&T beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP loss per share shrank.
Gross margins shrank, operating margins dropped, net margins expanded.
AT&T booked revenue of $32.58 billion. The 28 analysts polled by S&P Capital IQ wanted to see sales of $32.23 billion on the same basis. GAAP reported sales were 0.2% higher than the prior-year quarter's $32.50 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.44. The 34 earnings estimates compiled by S&P Capital IQ predicted $0.46 per share. GAAP EPS were -$0.68 for Q4 versus -$1.13 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.1%, 10 basis points worse than the prior-year quarter. Operating margin was -18.3%, 1,250 basis points worse than the prior-year quarter. Net margin was -11.8%, 870 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $31.74 billion. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $128.42 billion. The average EPS estimate is $2.53.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 5,373 members out of 5,827 rating the stock outperform, and 454 members rating it underperform. Among 1,292 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,221 give AT&T a green thumbs-up, and 71 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AT&T is hold, with an average price target of $36.72.
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